Despite taking the clubhouse lead in the morning, Kapur lost the advantage by the end of the day at the Delhi Golf Club here.
Among other Indians in fray -- Shamim Khan, who is currently leading the money list on the domestic circuit, signed for a 69 to take third place, while SSP Chawrasia remained in contention for another Panasonic Open win after returning with a 69 for a share of fourth place with compatriot Divyanshu Bajaj at the USD 400,000 event.
Peterson, who is making his debut at the Panasonic Open, started the day five shots back of the lead but made his move quickly by carding four birdies for an outward 32 before adding another four in his inward-nine to compile a two-day total of 11-under 133.
Play was suspended due to darkness at 5.30pm (local time) with two players -- Aman Raj and Feroz Singh Garewal -- set to resume their rounds at 8am tomorrow.
Kapur said he was satisfied to have hung in there quite well.
"I was trying to turn the ball around the corner, but I hit it into the bush and made double bogey. But, I felt that I hung in there quite well for the rest of the round and didn't let it slip away," said Kapur.
The Panasonic Open is sanctioned by the Asian Tour and Professional Golf Tour of India (PGTI) and is the second leg of the Panasonic Swing, which is an aggregate points race that spans five events -- in Thailand, India, Indonesia, Malaysia and Japan.
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